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Over 7,000 New Companies Created in October in an Increasing Trend

Spain’s Statistical Office reported that more than 7,000 new companies were created in October. The total business creation percentage rose by 1.5 percent compared to the same month last year. Our lawyers in Spain can give you complete details on how to open a company in Spain and the main rules and regulations for business creation.

An increase in the number of newly incorporated companies in Spain

The month of October brought a 1.5 percent increase in the total number of newly created companies in Spain, compared to the same month in 2016. According to the Statistical Office (INE), investors incorporated a number of 7,236 companies in Spain.
Out of these newly created companies, 21.5 percent activate in the trade sector and 14.5 percent activate in the construction sector. The creation of new companies rose by 17.6 percent on a month-on-month basis while the number of companies that were dissolved fell by 36.1 percent, also on a month-on-month basis.
The top regions for company creation remain Madrid, the northeastern region of Catalonia and southern Andalusia. More than 1,700 new companies were incorporated in Madrid and 1,260 in Andalusia.

Company formation in Spain

Investors who want to open a company in Spain in Madrid, Andalusia or another area need to start by choosing a suitable business structure. The corporation and the limited liability company (S.L.) are examples of such legal entities.
All companies in Spain need to have a tax identification number. The application is submitted to the State Tax Agency, together with the company founder’s documents. A provisional tax identification number is issued before the company is incorporated. Investors must apply for the definitive number once the company is registered with the Commercial Registry.
When choosing to open a company in Spain, entrepreneurs also need to consider the requirements for the minimum share capital.
Contact our law firm in Spain for information about the Company law and various other details that need to be considered before starting a business.